How can I learn to BUDGET MY MONEY BETTER?

Question

I JUST SPEND MY MONEY AND THEN I DONT KNOW WHERE I SPENT IT AT

Answer 1

make a speadsheet of all your expenses. if you like to pay in cash you can just put a line that says "cash" instead of tallying every little transaction.

Answer 2

I made a chart -- I used Word but a pencil & paper will work too.  I listed all monthly expenses and then decided what I would pay on the 15th and what I would pay on the 30th.

Then I made of list of things I needed and other bills that I needed to take care of.

What ever was left over was for play or saving.

It has really helped because now I know exactly how much money I can spend the minute I get paid.

Answer 3

Hi mor,

  You are not alone.  There are tricks to making a budget.

   A budget is not a punishment.  It is a tool that allows you to achieve your goals and to never have to worry about money again.

   First make a list of ALL of your expenses and don't forget those annual, semi annual, and occasional expenses (car registration, home insurance, etc.).  The expenses that don't come up each month, divide by 12 so that you are saving up for these expenses ahead of time each month and they don't come as a surprise hit to your budget.  If your expenses are more than your income, decide where to cut your expenses so that you are living BELOW your income.  Add an emergency fund to your budget- start saving $1000- $1250 for your emergency fund.

  

  Before you get your paycheck, decide where EACH dollar of your check is going to go including the column for the emergency fund.  If you have debt, put any "extra" money towards paying off any debt as soon as possible.

If you have debts:

1.First get current on all of you debts and make no  late payments. Stop using your credit cards immediately. Do not take on any more debt. Make a list of all of your debts in order of highest interest rate to lowest interest.

2. Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :

Debt #1 (highest interest): minimum payment+ extra payment

Debt #2 (middle interest): minimum payment

Debt #3(lowest interest): minimum payment

Debt #1: paid off

Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment

Debt #3: minimum payment

Debt #1: paid off

Debt #2: paid off

Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

3. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. That way if you have a big emergency like a layoff, you don't have to tutn to credit cards to survive.

4a.  When you have your full emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

4b.  When you have you emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. You employer probably matches at least part of your contribution so why give up free money.

4c. When you have your emergency fund in place open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

  It does take a bit of discipline but you can do it.  You just have to learn to tell yourself no.  It will take a bit of time to get your budget together but once you have it written down, it will not be too hard to follow each month.  You will find that you will not run out of money before you "run out of month" and

you will be able to do all of the things you want to do.

Answer 4

Write it down at the end of each day (or even as you go if you have time, like keeping a checkbook.)

Answer 5

i'm in exactly the same situation

i spent £500 in three days with nothing to show for it

i've started to work out what i need to spend on transport, food, bills etc each month and then set myself a target of saving a set amount of money.

for example, if i get paid £500 a month i'd save

£60 for transport

£35 for bills

£50 for food

£50 for essentials/neccessities

leaving me with £285.

£150 of which i would save

leaving me with £135 to spend as i wished

this is working for me but obviously you would have to adapt things to suit yourself. if your finding it difficult, open a seperate checking banking account and put in a certain amount of money each month.

also, dont be afraid to ask family/friends for help if you do slip up and spend too much

:)

Answer 6

discuss your problem on the Money Saving Expert Forum

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Answer 7

Keep a money journal. Right down what you spend, where you spend it, and what you spend it on!